North Carolina poised for another leading step on digital currency

(The Center Square) – Authorization of the state treasurer to diversify North Carolina's investment portfolio through digital assets has been proposed this week in the House of Representatives.

The bill comes five months after the General Assembly, by veto override, enacted a law prohibiting "payments to the state using Central Bank digital currency or participation by the state in Federal Reserve Branch testing of Central Bank digital currency." Nationally last year, the Financial Innovation and Technology for the 21st Century Act – known as FIT21 – passed through the U.S. House in May and in September was parked in the Senate's Committee on Banking, Housing and Urban Affairs.

The NC Digital Assets Investments Act, also known as House Bill 92, has investment requirements, caps and management, and clear definitions and standards aimed at making sure only qualified digital assets are included. A release from House Speaker Destin Hall, R-Caldwell, said the state would join more than a dozen others with "crypto-friendly legislation."

With him in sponsorship are Reps. Stephen Ross, R-Alamance, Mark Brody, R-Union, and Mike Schietzelt, R-Wake.

"We are seeing a rapid shift toward embracing blockchain technology and digital assets across the United States," Hall said in the release. "Investing in digital assets like Bitcoin not only has the potential to generate positive yields for our state investment fund but also positions North Carolina as a leader in technological adoption and innovation."

Ross called it a "forward-thinking move." Brody cautioned of U.S. dollar inflation and devaluation.

Dan Spuller, cochairman of the North Carolina Blockchain Initiative, said the state has proven a leader on digital asset policy. That includes the Money Transmitters Act of 2016, the North Carolina Regulatory Sandbox Act of 2021, and last year's No Centrl Bank Digital Currency Pmts to State. The latter was strongly opposed by Gov. Roy Cooper, so much so that passage votes of 109-4 in the House and 39-5 in the Senate slipped back to override votes, respectively, of 73-41 and 27-17.